I live in a 3 family home. I live on the 1st floor rent the other 2 apartments. I want to sell. I paid 115k , I refinance now i owe 192k. The sell price is 255k giving the buyer 8,000 back in closing. Living me with 247k. How much tax do i have to pay and i don't work? I own this house since 2002.
2007-01-23 11:39:59 · 2 answers · asked by amarilis r 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
How much you owe on the property is irrelevant.
You really have two separate transactions:
1) The sale of the third you lived in which will probably be tax free.
2) The sale of the two/thirds you rented out which you will owe taxes on. The taxes are calculated on the difference between what you sold it for, less what you paid for it plus depreciation claimed between 2002 and 2006.
This is a rather complex transaction. It is time to see a professional.
2007-01-23 13:19:24 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
You better sell it before the new congress gets in gear. All the tax cuts have been put in place by Republicans, and congress is now demo crate, so tax increases are coming. And about 40%
2007-01-23 12:42:13 · answer #2 · answered by T C 6 · 0⤊ 1⤋